Friday 11th of September 2009
A woman has spoken out about the financial situation of her daughter, revealing that she has undertaken an individual voluntary arrangement (IVA).
Speaking to the Guardian, she states that her 38-year-old teacher daughter earns £38,000 and has never defaulted on her IVA repayments.
Indeed, this scenario could show that Britons on a reasonable wage can also fall into the unsecured credit trap and require financial help such as IVA advice.
Responding to the mother’s question about whether she could buy her daughter’s rented home for her, the newspaper says the IVA will be on the credit file and as such, could put lenders off.
Despite this, choosing an IVA rather than bankruptcy could be seen as more favourable, as creditors should receive the money they are owed in smaller, monthly repayments, rather than having the debt cleared through a bankruptcy order.
The Citizens Advice Bureau has previously revealed that more middle-class Britons are asking for financial help, including an increasing number of teachers.
By Ashley Littley
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Bills causing you a headache? IVA answers may provide a solution
